Executive Summary
In 2024, the Mayor of the West Midlands, Richard Parker, set out his four priorities
for his mayoral term, which are:
- Jobs for everyone: investing in jobs, skills, training and apprenticeships and
reducing youth unemployment and ensuring everyone has a job that pays well. - Homes for everyone: building social and affordable homes and creating vibrant
communities so that everyone will have a place to call home. - Growth for everyone: helping businesses grow, supporting innovation and
creativity and making sure everyone benefits and the environment is protected. - Journeys for everyone: connecting communities and making travel easier, safer
and more affordable for everyone.
Since 2018, the WMCA has adopted an ‘Inclusive Growth’ approach(wmca.org.uk/inclusivegrowth). This states that we are committed to “a more
deliberate and socially purposeful model of [economic] growth, measured not only
by how fast or aggressive it is; but also, by how well it is created and shared across
the whole population and place, and by the social and environmental outcomes it
realises for our people.”
The eight fundamentals of Inclusive Growth are: climate and environment;
inclusive economy; power and participation; affordable and safe places;
connected communities; education and learning; health and wellbeing; and
equality.
The Mayor’s four key priorities align with the WMCA’s priority of Inclusive Growth,
ensuring that investments in jobs, housing, growth and transport benefit all
residents, fostering a connected and thriving community across the WMCA area.
To achieve the Mayor’s goals and the vision of the WMCA, we need to understand
that the region’s challenges are complex and interconnected. We can’t treat these
issues as separate problems; instead, we should see them as part of a larger,
dynamic system. This means our solutions must consider how access to housing,
jobs, skills, and leisure, along with local politics, history, and culture, all influence
each other and the success of any intervention.
As a result of this, the West Midlands State of the Region report sets out its
key messages and recommendations around the eight West Midlands Inclusive
Growth fundamentals. These considers all types of investment – public, private,
capital, revenue, time, attention – against a clear set of missions. These missions
– the eight ‘fundamentals’ of inclusive growth – also connect to one another,
ensuring that the real people, places, and businesses across the region are not lost
in thematic silos.
Demographics and communities
The WMCA area is home to 2.9 million people. It has one of the youngest
populations in Europe; and one of the most ethnically diverse, with nearly four in
ten from an ethnicity other than ‘White British’. The latest, mid-2023 population
estimate for the WMCA area, is 2,980,936 people. This has increased by 1.1% from
the mid-2022 estimate of 2,948,513.
Climate and environment
CO₂ emissions per capita in the WMCA area have consistently decreased from
2013 to 2022. Over time, differences between local authorities have narrowed,
indicating a convergence toward lower emissions. Industry emissions in the West
Midlands decreased from 1.5 tonnes per capita in 2018 to 1.2 tonnes in 2020.
Domestic CO₂ emissions in the WMCA area decreased from 1.4 tonnes per capita
in 2018 to 1.1 tonnes in 2022, an 18% reduction.
Mortality rates due to particulate air pollution peaked in 2019 but have gradually
decreased since, showing consistent progress across the region.
Household waste per 1,000 households in the WMCA area slightly declined
between 2013/14 and 2022/23. Dudley had the lowest waste levels, while Solihull
had the highest in 2022/23. Although differences in household waste levels are
minimal. Household waste generally includes compostable items like food and
garden waste, recyclable materials such as plastic, metal, glass, paper, and card,
and residual (non-recyclable) waste. Measuring the reduction in residual waste
offers valuable insights into the environmental impact of households in the WMCA
area and its progress towards achieving net zero.
The WMCA area has seen a significant increase in public electric vehicle EV
charging points between January 2022 and June 2024. Coventry showed the
greatest increase with a 300% rise, from approximately 500 to 2,000 charging
points.
The development of local growth plans presents an unparalleled
opportunity to use the necessary transition to net zero as an opportunity
and engine of growth for the WMCA area. However, given that the effects of
climate change disproportionately affect our most deprived communities,
efforts must be intensified around climate adaptation through naturebased
solutions; mitigating against the worst effects of climate change;
retrofitting homes; and ensuring that opportunities from the climate
transition, such as jobs, benefits our most deprived communities through
retraining.
Inclusive economy
From 2021 to 2022, the WMCA economy grew by 3.2% Gross Domestic Product
(GDP) and 3.3% Gross Value Added (GVA) in real terms, reflecting continued
recovery from the pandemic. However, the economy remains slightly smaller than
pre-pandemic levels. Growth was uneven across the region, with Wolverhampton
experiencing a 5.9% GDP growth, while Sandwell had a GDP growth of 0.9%.
Birmingham and, Dudley and Wolverhampton surpassed their pre-pandemic
economic sizes, however Coventry, Sandwell, Solihull, and Walsall remain at
a lower economic size. Gross disposable household income (GDHI) per capita
in the WMCA area was £17,464 in 2022. Productivity indicators show mixed
results, GVA per job returned to pre-pandemic levels, yet hourly productivity
declined by 1.1% between 2021 and 2022, showing increased work hours without
corresponding productivity increases. Median weekly pay for full-time workers in
2024 stood at £673, below the England average of £732. Permanent employment
remains strong in the WMCA, with 94.7% of employed working-age individuals
in stable jobs in 2022. However, overall employment in the WMCA area, at
69.6% in mid-2024, lags behind regional and national averages, though the gap
has narrowed since 2016. Economic inactivity rose slightly to 26.1%. Workless
households at 16.0%, are among the highest for all combined authority areas, with
significant variation across the WMCA area.
The WMCA has the highest unemployment claimant rate among all combined
authority areas. In October 2024, 8.3% of working-age residents claimed
unemployment benefits, with youth claimants at 9.5%. Over the past year, the
number of businesses in the WMCA area has not grown. However, the smaller
number of businesses has pivoted towards export-led growth, defying national
trends of decline. Additionally, the WMCA area is successfully attracting new
investment, creating over 6,000 jobs in 2023/24, more than any other combined
authority area outside of London. Despite a slight 1.1% decrease in active
enterprises in 2023, there has been a 3.3% growth since 2018, outpacing national
trends. The social economy in the WMCA area is thriving, with approximately
9,300 organisations providing over 100,000 jobs in 2024.Highlighting, the
WMCA’s resilience and capacity for economic growth and job creation.
While our economy has grown, it has done so at a slower pace compared
to the overall growth in the UK. Moreover, households are not experiencing
the benefits of this growth, as their disposable income is increasing at a
rate below the UK average. Our inclusive growth approach asserts that
to fully unlock the region’s economic potential and achieve prosperity
for all, everyone must have the opportunity to participate in and benefit
from economic growth. Therefore, the development of a local growth plan
must not only focus on fostering high-growth clusters but also consider
its positive impact on households and improving the quality of life for
everyone.
Power and participation
In 2023/24 62% of WMCA residents were satisfied with their local area as a
place to live, below the England figure of 74%. Participation in elections remains
low, reflecting broader voter disengagement. In 2023, turnout for local elections
was below the England average of 32.0%, with figures ranging from 22.8% in
Sandwell to 30.1% in Solihull. The 2024 Mayoral election saw a 29.8% turnout, a
slight decrease from 31.2% in 2021. While general election participation is higher,
turnout in the WMCA area remains below England averages. In 2024, 52.4% of
eligible voters participated in the WMCA area, compared to 59.7% in England.
Civic participation in the WMCA area is below the England average, with 36% of
WMCA residents engaging in civic participation compared to 41% in England in
2023/24. 51% of WMCA area residents volunteered at least once in the past 12
months, this compared to 54% in England. Volunteering rates varied between local
authorities from 55% in Solihull to 46% in Wolverhampton. However, only 29% of
WMCA residents would like to be more involved in local decisions.
In 2024, residents voted in a new Mayor of the West Midlands. However, far
too many residents still feel they have no influence over how things are run.
The English Devolution White Paper sets out the Government’s commitment
towards further devolution, which creates opportunities for power and
control to be returned to the people that know their places best. As the
region regains powers through deeper devolution, and gains opportunities
to decide how funding is spent through an integrated settlement, the
WMCA and its constituent local authorities must ensure that residents and
communities are fully informed, included, and involved in the decisionmaking
process, so that changes to things that affect people’s lives are done
with people, rather than to people.
Affordable and safe places
Housing costs vary significantly across the WMCA area, with average house
prices ranging from £206,000 in Sandwell to £355,000 in Solihull. Rental costs
follow a similar pattern, with Birmingham at the higher end at £1,025 per month
and Dudley at the lower end at £771 per month. Private rents in the WMCA
account for 26.2% of household income, below the England average of 34.2%.
However, home ownership has become less affordable, with median house
prices 6.61 times average annual earnings in 2023, up from 4.77 in 2013. Solihull
is the least affordable area, while Coventry is the most affordable, relative to
incomes. Demand for social housing remains high, with 64,382 households on
the waiting list. The West Midlands region has 237,373 social housing units, with
average weekly rents of £89.69 for local authority properties and £103.94 for
private registered properties. Disparities in access persist, with ethnic minorities
underrepresented in new social housing allocations in some local authorities.
Local Housing Allowance (LHA) rates, intended to make private renting accessible
for low-income households, fail to meet rising rental costs. In 2024, only 12%
of private rental properties in the WMCA area were affordable within LHA
limits, a slight improvement from previous years but still far below the intended
coverage of 30%. Homelessness remains a pressing issue, with 19,252 households
seeking assistance in 2023/24, a 16% increase from the previous year. Despite
this rise, the rate of homelessness per 100,000 households has decreased to
8.44, though it remains above national and regional averages. Coventry has
the highest rates of homelessness, while Walsall has the lowest. Crime in the
WMCA area has declined by 10 percent between June 2023 and June 2024.
With the greatest decreases in crime from public order offences, theft from the
person and stalking and harrasment. The crime rate in the WMCA area (109.4
crimes per 1,000 people) compares well against other large urban areas such as
Greater Manchester (114.6) and Greater London (105.8). However, it is still higher
than areas such as Merseyside (97.2) and Somerset (88.9). The main crimes in
the WMCA area are for violent offences, possession of weapons, robbery and
burglary.
The increase in the cost of living over the past few years continues to put
pressure on household finances for homeowners and renters alike, with
increases in monthly rental and mortgage costs. There are disparities in how
the cost of living is felt by different population groups and across our towns
and cities. Given that the next biggest costs following rent/mortgages are
transport costs and food, investments and support with travel costs is also
an important consideration in reducing cost pressures for households.
There is a need to ensure that homes are of a decent standard, and the
work to unlock key housing sites connected to transport networks is a huge
opportunity to create more affordable and decent homes for everyone.
Connected communities
In the West Midlands there has been a consistent reduction in the number of bus
kilometres travelled by West Midlands Bus service, over the past 14 years. This
has decreased from 173.27 million in 2010 to 115.11 million in 2024, representing
a 33.6% reduction. There was a noticeable drop between 2020 and 2021, where
kilometres travelled fall from 151.52 million to 129.15 million, a reduction of 22.37
million kilometres, a 14.8% reduction. In line with the impacts of the COVID-19
pandemic. Although 2022 saw an increase, number have not returned to prepandemic
levels.
In terms of our digital infrastructure, the WMCA area saw substantial progress in
gigabit internet infrastructure development in four years, with gigabit availability
increasing from 49.89% of households in 2020 to 82.75% in 2024.
The West Midlands relies heavily on bus travel for its public transport
network. However, with declining bus patronage, the network has become
increasingly dependent on public funding, with approximately £50
million spent annually to sustain it. As a result, the size and scope of the
bus network, have decreased. Bus reform holds the greatest potential to
revitalise and transform transport in the West Midlands. This includes
making the bus network more reliable, raising standards, and enabling
residents and communities to access employment opportunities, as well
as leisure and cultural events with friends and family. Additionally, many
journeys in the WMCA area involve active travel. Integrating walking and
cycling with the public transport network is equally important to improve
connectivity and reduce traffic. In terms of digital connectivity, the WMCA
area has seen significant improvements in its 5G network and access to
high-speed gigabit broadband. However, some communities are at risk
of digital exclusion. Efforts must be made to ensure that connectivity is
inclusive, allowing everyone to access jobs, growth, homes, and journeys.
Education and learning
In 2023, 60.7% of residents in the WMCA area aged 16 to 64 held at least one
Level 3 qualification (A-level or equivalent) or higher. This is an increase from
59.3% in 2022, though it continues to lag behind the wider West Midlands region
(63.6%) and England (67.4%). Research indicates that individuals with Level 3
qualifications are more likely to be employed, earn higher wages, and are less
likely to claim out-of-work benefits compared to those with Level 2 qualifications
or below. On average, Level 3 qualifications result in 16% earnings return and a 4%
increase in employment likelihood.
In terms of higher education, 47.9% of school leavers in the WMCA area
progressed to higher education in the 2022/23 academic year, slightly down
from the previous year but higher than both the West Midlands area (45.3%) and
England (46.9%). This rate has significantly increased from 36.2% in the 2012/13
academic year. Despite regional disparities, areas like Sandwell have seen notable
increases in higher education participation, although some areas like Dudley have
experienced declines.
Apprenticeship starts have declined in the WMCA area, with a 32% drop from
25,190 in 2013/14 to 17,190 in 2023/24. This trend aligns with national figures and
is partly attributed to the introduction of the Apprenticeship Levy in 2017, which
has particularly impacted intermediate-level apprenticeships.
Pupils in the WMCA area generally achieve lower attainment and progress in
secondary education compared to the England average. The average attainment
8 score in the West Midlands region for the 2022/23 academic year was 44.9,
below the England average of 46.4. The progress 8 score was -0.09, indicating
that pupils are not making as much progress as expected. School absences have
increased since the COVID-19 pandemic, with 7.6% of sessions missed in the
2022/23 academic year in the West Midlands, slightly above the England average
of 7.4%. However, there are signs of improvement, with the autumn term absence
rate for 2023/24 being 6.7%. 63% of students in the WMCA area aged 14-16
achieved at least a grade 4 in English and Maths, which is lower than the wider
West Midlands area (64%) and England (67%). These qualifications are crucial for
further study, employment, and apprenticeships.
As more people in the WMCA area gain a level 3 qualification, it opens
up opportunities for improvements to their employment opportunities,
earnings potential, quality of life, and life outcomes. Ensuring that everyone
has opportunities to access qualifications, especially those who have not
been adequately served by the education system, will help deliver jobs for
everyone; and attract businesses and investors into the region through the
provision of a high-quality workforce.
Health and wellbeing
Life expectancy at birth in the WMCA region is slightly below the England
average, with a difference of 0.6 years for females and 0.7 years for males. Solihull
has the highest life expectancy, while Wolverhampton and Sandwell have the
lowest. This disparity highlights the inequalities in health outcomes across the
region. The region has also seen an increase in preventable deaths, particularly
during the COVID-19 pandemic. The rate of preventable deaths rose from 147 per
100,000 in 2019 to 202.4 in 2021, higher than the England average of 183.1.
Over the last decade, healthy life expectancy (HLE) at birth in England has
declined. In the WMCA region, only Solihull has a higher HLE than the England
average, highlighting regional disparities. However, disability-free life expectancy
(DFLE) at age 65 has generally improved since 2014-2016. Environmental factors
significantly impact health, with air quality being a critical indicator. Particulate
matter (PM2.5 and ultrafine particles) poses severe health risks, with the highest
concentrations observed along major roads like the M6 and Aston Expressway.
Despite some improvements, mortality rates linked to air pollution remain higher
in the WMCA than the England average. Particulate matter and Carbon dioxide
are often emitted from similar sources, such as vehicles. Reducing emissions from
these sources can decrease both particulate matter and Carbon dioxide levels.
Smoking rates have declined from 17.5% in 2017/18 to 15.7% in 2021/22. However,
drug use remains a concern, with 9.5% of people aged 16 to 59 reporting drug
use in 2023. The WMCA area recorded 472 drug misuse deaths in 2020-22.
Physical activity levels in the WMCA are slightly below the England average, with
64.0% of adults being physically active in 2022/23. The West Midlands region has
the lowest percentage of physically active children and young people at 43.9%.
Additionally, obesity rates among reception children are the highest in the country
at 10.9%.Most residents report moderate to high life satisfaction at 94.8%, but 22% of
residents experience high levels of daily anxiety.
By focusing on the socioeconomic causes of health inequalities, the region’s
below average life expectancy and high levels of preventable deaths can
be addressed. This requires public services to be reformed to be more
integrated and more strongly focused upon prevention, with interventions
built around the way people live their lives so that the socioeconomic
causes of health inequalities can be addressed.
Equality
Women earn 9.5% less than men in the WMCA area, lower than England.
Disabled employees face a substantial pay gap of 17.7% compared to non-disabled
employees.
Households of Black and Other ethnicities are overrepresented in homelessness
and Temporary Accommodation. Conversely, White households are
underrepresented. Ethnic minorities face higher costs for new social housing, with
some groups spending up to 40% of their income on rent compared to 34% for
White households.
Academic progress varies significantly by ethnicity and gender in the WMCA area.
White and Mixed ethnicity students, especially boys, underperform compared
to England. Girls of Asian and Other ethnicities show strong positive progress,
whereas Mixed ethnicity girls lag behind England trends with negative progress in
the WMCA area.
There are disparities in rates of stop and search, with Mixed and Black ethnic
groups subject to searches more frequently than people of other ethnic groups.
Travel patterns differ by ethnicity and gender. Car usage dominates for Asian,
Mixed and White groups, while bus travel is the primary mode for people of
Black ethnicity. Walking trips are more common among people of Mixed ethnicity
compared to other groups.
Infant mortality rates in the West Midlands are higher than the England average
for all ethnicities with Black and Other ethnicity infants particularly affected.Similarity, child death rates are elevated across all ethnic groups, with Mixed
ethnicity children experiencing the sharpest disparity.
To deliver opportunities for everyone, the visible and invisible systemic
barriers that hold back the people of the West Midlands, regardless of
their gender, ethnicity, disability, sexual orientation, and other protected
characteristic must be understood, dismantled, and addressed.